AB88: Bill Text

LRB-1490/1

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2005 - 2006 LEGISLATURE

2005 Assembly BILL 88

February 3, 2005 - Introduced by Representatives Wood, Suder, Pettis, Musser, Owens, Bies, McCormick, Freese, Gunderson, Hundertmark, Gronemus, Hines, Lothian, F. Lasee, Boyle, Vrakas, Kreibich, Ott, Petrowski, Gundrum, Nischke and Pridemore, cosponsored by Senators Zien, Leibham and Hansen. Referred to Committee on Ways and Means. Referred to Joint Survey Committee on Tax Exemptions.

AB88,1,3 An Act to create 70.11 (12m) and 71.26 (1) (am) of the statutes; relating to: income tax and property tax exemptions for the American Legion and the Veterans of Foreign Wars.

Analysis by the Legislative Reference Bureau

Under current law, the income of certain entities is exempt from the state income tax. Those entities include political units of this state or the United States, the University of Wisconsin Hospitals and Clinics Authority, a local exposition district, a local professional baseball park district, and certain cooperative associations or corporations.

Under this bill, the income of the American Legion and the Veterans of Foreign Wars is exempt from the state income tax.

Under current law, generally, property owned by educational, religious, and benevolent institutions, historical societies, and certain fraternal societies is exempt from the property tax. In addition, memorial halls, and the land on which the halls are located, that are owned and occupied by any organization of United States war veterans are exempt from the property tax. Under the bill, property not exceeding 30 acres and owned by the American Legion or the Veterans of Foreign Wars is exempt from the property tax.

This bill will be referred to the Joint Survey Committee on Tax Exemptions for a detailed analysis, which will be printed as an appendix to this bill.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB88, s. 1 Section 1. 70.11 (12m) of the statutes is created to read:

AB88,2,4 70.11 (12m) American Legion and the Veterans of Foreign Wars. Property owned by the following organizations that is necessary for the location and convenience of buildings, not exceeding 30 acres:

AB88,2,5 (a) The American Legion.

AB88,2,6 (b) The Veterans of Foreign Wars.

AB88, s. 2 Section 2. 71.26 (1) (am) of the statutes is created to read:

AB88,2,10 71.26 (1) (am) Certain fraternal societies. Income of the American Legion, as organized under s. 188.08, and of the Veterans of Foreign Wars, as organized under s. 188.11.

AB88, s. 3 Section 3. Initial applicability.

AB88,2,13 (1) The treatment of section 70.11 (12m) of the statutes first applies to the property tax assessments as of January 1, 2005.

AB88,2,18 (2) The treatment of section 71.26 (1) (am) of the statutes first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31 the treatment of section 71.26 (1) (am) of the statutes first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

AB88,2,19 (End)